Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

Staff from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will hold two joint public roundtables in September on issues relating to implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 The first roundtable on September 14 will be on issues related to swap data repository (SDR) registration, functions and responsibilities, the mechanics of data reporting, models for real time public reporting and the effect of transparency on liquidity of block trades and large transaction sizes.

 The first roundtable will consist of the following panels:

  •  Panel One — SDR Registration, Functions, and Responsibilities
    • Duties of SDRs in addition to those required by the Dodd-Frank.
    • The most efficient and effective way for SDRs to execute their statutory duties.
    • How to implement the confirmation function under Dodd-Frank – to what extent and under what circumstances will SDRs be expected to do trade confirmations
  • Panel Two — Mechanics of Data Reporting
    • Type of data reported by SDRs, derivatives clearing organizations (DCOs), designated contract markets (DCMs), swap execution facilities (SEFs), swap dealers and major swap participants (MSPs).
    • Parties responsible for reporting of swap and security-based swap data.
    • Means by which mandatory reporting may be made.
    • Reporting of swap and security-based swap transactions executed or cleared on an electronic platform.
    • The time by which swap and security-based swap transactions must be reported.
    • Handling of data corrections.
    • Reporting of life cycle events.
    • Reporting of past transactions.
  • Panel Three — Models for Real-Time Transparency and Public Reporting
    • Benefits of real time reporting of swaps and security-based swaps transactions.
    • Entities responsible for reporting.
    • Data elements.
    • Ensuring anonymity of market participants.
    • The meaning of “real-time”.
    • Appropriate media for real-time reporting of swap and security-based swap transaction data.
    • Feasibility/desirability of a consolidated tape or ticker for swaps and security-based swaps.
  • Panel Four — Effect of Transparency on Liquidity: Block Trade Exception
    • Defining block trades and large transaction sizes for swaps and security based swaps.
    • Determining an appropriate delay for reporting block trades and large transactions.
    • Effects of transparency on post-trade liquidity.
    • Responsibility for determining minimum block sizes and large transaction sizes for reporting purposes.

 The second public roundtable on September 15 will be on issues related to swap execution facilities and security-based swap execution facilities.

 The second roundtable will consist of the following panels:

  •  Panel One — Swap Execution Facilities (“SEFs”) and Security-based Swap Execution Facilities (“SB SEFs”)
    • Definition and scope of SEFs/SB SEFs.
    • Scope of exception from mandatory trading requirement.
  • Panel Two — Compliance with Core Principles for SEFs and SB SEFs
    • Block trades
    • Surveillance, investigation, and enforcement of SEF/SB SEF rules.
    • Cross-market issues.
    • Obligation of SEFs /SB SEFs to provide impartial access

 Check frequently for updates on the Dodd-Frank Act.